India’s retail inflation, based on the Consumer Price Index (CPI), in November 2023 increased to 5.55 per cent, according to the latest official data released on Tuesday. Though the 5.55 per cent CPI inflation is far from the RBI’s medium-term target level of 4 per cent, it is within the tolerance limit of 2-6 per cent.

Meanwhile, India’s industrial output, based on IIP, growth stood at a 16-month high of 11.7 per cent in October 2023, according to the latest official data released separately.

The retail inflation in the country had stood at 4.87 per cent in October 2023, which was the lowest level in five months. Inflation had been declining since August when it touched 6.83 per cent.

The rate of price rise in the food basket was 8.7 per cent against 6.61 per cent in October and 4.67 per cent in November 2022, the National Statistical Office (NSO) data showed.

The Reserve Bank of India has been tasked by the government to ensure retail inflation remains at 4 per cent with a margin of 2 per cent on either side. In the monetary policy announced last week, the RBI projected the CPI inflation at 5.4 per cent for 2023-24, with a reading of 5.6 per cent in the third quarter and 5.2 per cent in the last quarter.

IIP Growth In October

India’s industrial production growth increased to a 16-month high of 11.7 per cent in October, mainly due to good show by manufacturing, mining and electricity sectors, according to the official data released on Tuesday.

“India’s IIP growth rate rises to a 16-month high of 11.7 per cent in October 2023,” an official statement said.

Factory output measured in terms of the Index of Industrial Production (IIP) had contracted by 4.1 per cent in October 2022.

The data released by the National Statistical Office (NSO) showed that the manufacturing sector’s output grew by 10.4 per cent in October 2023.

Mining production rose 13.1 per cent during the month under review. Power output rose 20.4 per cent.

The IIP grew by 6.9 per cent in April-October 2023 compared to 5.3 per cent growth a year ago.